Residential Real Estate Toolkit: Offers, Contingencies, Disclosures, and Closing

Summary. A working kit for residential transactions: decision tables for deeds, title policies, and loans; a contingency clause library with strong and weak versions side by side; the letters and forms the transaction actually requires; a wire fraud protocol and a Closing Disclosure comparison worksheet; a co-ownership term sheet; and the primary authorities.

SECTION A — DECISION TABLES

A-1. Deeds

Present covenants (seisin, right to convey, against encumbrances) are breached at delivery if at all. Future covenants (quiet enjoyment, warranty, further assurances) are breached only on eviction or disturbance.

A-2. Title insurance

What an owner's policy covers that a search cannot find: forged deeds and releases, undisclosed or missing heirs, prior owners' unrecorded interests, recording and indexing errors, incapacity of a prior grantor, fraud in the chain, and defective conveyances.

A-3. Loan products

ARM checklist: initial fixed period · caps (initial / periodic / lifetime) · index and margin · the payment at the lifetime cap. Compute that last figure before signing.

SECTION B — CONTINGENCY CLAUSE LIBRARY

Each pair shows a protective version and the weak version that appears in competitive offers.

B-1. Financing

STRONG. This Agreement is contingent upon Buyer obtaining a written loan commitment for a loan of not less than $______, of the type [conventional / FHA / VA], at an interest rate not exceeding ____% and with total lender points not exceeding ____, on or before [date]. If Buyer has not obtained such a commitment by that date, Buyer may terminate this Agreement by written notice delivered on or before [date + 2], whereupon the earnest money shall be returned to Buyer in full. Buyer shall apply within three business days and shall diligently pursue the application.

WEAK. "Buyer shall apply for financing." — Creates almost no exit. A denial may leave Buyer in breach.

B-2. Appraisal

STRONG. If the property does not appraise at not less than the Purchase Price, Buyer may, within ___ days after receipt of the appraisal, (a) terminate this Agreement by written notice and receive a full refund of the earnest money, or (b) proceed at a renegotiated price agreed in writing.

CAPPED GAP (competitive but bounded). If the appraised value is less than the Purchase Price, Buyer shall pay in cash, in addition to the down payment, the shortfall up to a maximum of $______. If the shortfall exceeds that amount, Buyer may terminate by written notice within ___ days and receive a full refund.

WEAK. "Buyer waives the appraisal contingency." — Open-ended cash obligation of unknown size.

B-3. Inspection

STRONG (sole discretion). Buyer may conduct inspections at Buyer's expense through [date]. On or before that date Buyer may, in Buyer's sole and absolute discretion, terminate this Agreement by written notice, whereupon the earnest money shall be returned in full.

MIDDLE (threshold). If inspections disclose defects the reasonable cost to remedy of which exceeds $______ in the aggregate, Buyer may request repairs or a credit. If the parties do not agree in writing within ___ days, Buyer may terminate and receive a full refund.

WEAK (information only). "Buyer may inspect for informational purposes. This Agreement is not contingent on the results." — A waiver wearing a contingency's clothes.

B-4. Title

Buyer shall have ___ days after receipt of the title commitment and any survey to deliver written objections to any exception or condition. Seller shall have ___ days to cure. If Seller does not cure, Buyer may terminate and receive a full refund, or accept title subject to the uncured matter. Matters not objected to within the period are deemed accepted.

B-5. Sale of buyer's current home

This Agreement is contingent upon the closing of the sale of Buyer's property at [address] on or before [date]. Seller may continue to market the Property and, upon accepting a bona fide backup offer, may deliver written notice requiring Buyer to remove this contingency within ___ hours or terminate ("kick-out").

B-6. HOA / condominium document review

Seller shall deliver the declaration, bylaws, rules, current budget, most recent reserve study, insurance certificate, twelve months of minutes, and a resale certificate or estoppel within ___ days. Buyer shall have ___ days after receipt to review and may terminate by written notice for any reason disclosed therein, receiving a full refund. Any special assessment levied, pending, or under discussion shall be paid by Seller at closing.

B-7. Post-closing occupancy

Seller may occupy the Property through [date] at a daily rate of $, payable at closing. Seller shall deposit $ in escrow, from which Buyer may draw for damage or holdover. Seller shall maintain renter's insurance; Buyer shall maintain the homeowners policy. Seller occupies as a licensee, not a tenant. If Seller has not vacated by [date], the daily rate increases to $______ and Seller shall be liable for Buyer's resulting costs. (Note: whether a state will honor the licensee characterization varies — keep the term short.)

SECTION C — LETTERS AND FORMS

C-1. Inspection response

Re: Inspection response — [address] — delivered pursuant to Section ___ of the Purchase Agreement dated [__]

Buyer has completed inspections. Pursuant to Section ___, Buyer requests the following on or before [date]:

Repairs (to be performed by licensed contractors, with invoices provided at closing):

1. Replace the sewer lateral from the structure to the main. Work to be permitted and performed by a licensed plumber. [Inspection video and scope report attached.]
2. Correct double-tapped breakers in the subpanel; licensed electrician.

Credit in lieu of repair: 3. Water heater (manufactured [year], at end of service life) — $1,400 credit at closing.

Accepted as-is: all other items in the report.

If the foregoing is not agreed in writing on or before [date], Buyer reserves all rights under Section ___, including termination and return of the earnest money.

C-2. Title objection

Re: Title objection — [address] — Commitment No. ______, delivered pursuant to Section ___

Buyer objects to the following matters in the referenced commitment:

1. Schedule B-II, Exception 6 — restrictive covenant recorded [date], Book ___ Page ___, prohibiting detached accessory structures. Buyer requires this exception be removed or that Seller obtain a written release from the party entitled to enforce it.
2. Schedule B-II, Exception 9 — mortgage in favor of ______ recorded [date], with no release of record. Buyer requires a recorded release at or before closing.
3. Survey matter — the fence along the north boundary encroaches approximately 2.3 feet onto the Property. Buyer requires either a recorded boundary line agreement or removal.

Seller has until [date] to cure. Buyer reserves the right to terminate and receive a full refund if these matters are not cured.

C-3. Repair credit amendment

AMENDMENT NO. ___ TO PURCHASE AND SALE AGREEMENT dated [__] between [Seller] and [Buyer] for [address].

1. Seller shall, at Seller's expense and on or before [date], replace the sewer lateral, permitted and performed by a licensed plumber, and shall deliver the permit and paid invoice to Buyer at least three days before closing.
2. Seller shall credit Buyer $1,400 at closing, applied to Buyer's closing costs and prepaid items to the extent permitted by Buyer's lender, and to the purchase price otherwise.
3. The Purchase Price is reduced from $______ to $______.
4. All other terms of the Agreement remain in full force. No other repairs or credits are agreed.

Seller: ______________ Date: ______ Buyer: ______________ Date: ______

C-4. Appraisal reconsideration of value request

Re: Request for reconsideration of value — [address] — Loan No. ____, Appraisal dated []

I request reconsideration of value on the following specific grounds:

Factual errors. The report states 1,840 square feet; the county record and the attached survey show 2,010. The report states two full baths; there are two full and one half [photographs attached].

Comparable sales not considered. The following sales are more recent, closer, and more similar than those used:

Address	Sale date	Distance	Sq ft	Price	Why more comparable

Comparables used that should not have been. Comparable 3 is on the far side of a limited-access highway and in a different school attendance area.

I am not asking for a predetermined value; I am asking that these facts and sales be considered.

C-5. Escrow release demand

Re: Demand for release of earnest money — [address] — Escrow No. ______

The Purchase Agreement dated [] terminated on [date] when Buyer timely delivered written notice under Section ___ [copy attached, with proof of delivery]. Under Section , the earnest money of $_ is to be returned to Buyer.

Demand is made that you execute the enclosed release and disburse the earnest money to Buyer within ___ days, as provided in Section ___ of the Agreement. If the release is not executed within that period, Buyer will pursue [the contract's mediation requirement / all available remedies], including recovery of costs and, where permitted, attorney's fees.

C-6. Final walkthrough form

FINAL WALKTHROUGH — [address] — [date/time] — present: ____________

REPAIRS AGREED (Amendment No. ___)
  □ Sewer lateral replaced      invoice received □   permit received □
  □ Electrical subpanel         invoice received □
  □ ____________________        invoice received □

CONVEYS WITH THE PROPERTY
  □ Refrigerator  □ Range  □ Dishwasher  □ Microwave  □ Washer  □ Dryer
  □ Window treatments  □ Shed  □ Mounted TV brackets
  □ Garage remotes (___)  □ Mailbox key  □ All keys (___)

SYSTEMS TESTED
  □ Heat  □ Cooling  □ Water heater  □ All faucets  □ All toilets
  □ Every outlet in ___ rooms  □ Garage door  □ Smoke/CO detectors

CONDITION
  □ Empty  □ Broom-clean  □ No move-out damage  □ No new water intrusion

ISSUES FOUND (photograph each, note time):
  ________________________________________________
RESOLUTION BEFORE CLOSING:
  □ Escrow holdback $______   □ Closing credit $______   □ Delay closing
Buyer: ____________  Agent: ____________

SECTION D — TWO PROTOCOLS

D-1. Wire fraud verification (use every time, no exceptions)

1. NEVER take wiring instructions from an email, text, or attachment,
   even one that appears to come from your agent, lender, or title company.
2. Look up the settlement agent's telephone number INDEPENDENTLY —
   from the company's website, the signed contract, or directory
   assistance. Not from the signature block of any message.
3. CALL and verbally confirm: bank name, routing number, account number,
   beneficiary name, and the amount.
4. Treat ANY change of instructions — however plausible the explanation —
   as fraud until independently re-verified by the same method.
5. Send the wire. Then CALL AGAIN to confirm receipt within one hour.
6. If you suspect a fraudulent transfer: contact your bank IMMEDIATELY
   and request a recall, then the receiving bank, then the FBI's IC3.
   The first four hours matter more than everything after them.

D-2. Closing Disclosure comparison worksheet

Received at least three business days before consummation? ☐ Yes ☐ No — if no, the closing cannot proceed.

SECTION E — CO-OWNERSHIP AGREEMENT TERM SHEET

1.  OWNERS AND SHARES     ____% / ____%, held as tenants in common
2.  CONTRIBUTIONS         Down payment: A $______  B $______
                          Closing costs: A $______  B $______
                          Credited on sale before profit is divided □
3.  MONTHLY               Mortgage/tax/insurance split ____/____
                          Utilities ____/____  HOA ____/____
4.  OCCUPANCY             Who occupies; occupying owner pays $____/mo rent
5.  IMPROVEMENTS          Above $______ requires written consent of all
                          Credited on sale at cost / at appraised added value
6.  REFINANCE / HELOC     Requires unanimous written consent
7.  BUY-SELL              Any owner may offer to buy or sell at a price set
                          by [average of two appraisals]. Other owner has
                          ___ days to buy or sell at that price.
8.  DEATH                 Interest passes by will/trust (TIC) — each owner
                          shall maintain a current estate plan
9.  DEFAULT               If an owner fails to pay for ___ days, the others
                          may cure and receive [a credit at ___% interest /
                          an increased ownership share]
10. DEADLOCK              Mediation → buy-sell → sale of the property
11. FORCED SALE           Any owner may compel a sale after [date] on
                          ___ days' notice, with the others holding a
                          right of first refusal at the listed price

Without this document, the remedy for a co-owner who wants out is a partition action — available as of right in most states, slow, expensive, and usually producing a below-market sale.

SECTION F — PRIMARY AUTHORITY

• 12 U.S.C. § 2601 et seq. (RESPA), with § 2605 (servicing, escrow, qualified written requests) and § 2607 (kickbacks and unearned fees); 12 C.F.R. Part 1024 (Regulation X).
• 15 U.S.C. § 1601 et seq. (TILA); 12 C.F.R. Part 1026 (Regulation Z); 15 U.S.C. § 1639c (ability to repay).
• 42 U.S.C. § 4852d — lead-based paint disclosure on transfer.
• 42 U.S.C. § 3604 · § 3605 · § 3617.
• 42 U.S.C. § 1982; Jones v. Alfred H. Mayer Co., 392 U.S. 409 (1968).
• 15 U.S.C. § 1691 · § 1691e (ECOA).
• State statutes of frauds, residential disclosure acts, recording acts, marketable title acts, and mechanic's lien statutes; the Homeowners Protection Act on PMI termination; 26 U.S.C. § 121 (principal residence gain exclusion) and § 1031 (like-kind exchanges).

Related documents

• Buying and Selling a Home
• Buying or Selling a Home: A Practical Guide from Offer to Keys
• Home Purchase and Sale Checklist
• Landlord-Tenant Toolkit
• Foreclosure Defense and Loan Workout Toolkit
• Fair Housing and Lending Toolkit
• Contract Construction Toolkit

This toolkit is educational and not legal advice. Every clause and form must be adapted to state law and local custom; provisions enforceable in one state are void or ineffective in another. Have counsel review before use.